High levels of turnover among employees is usually a sign of an incompetent manager. Employees don’t want to stay involved with a company where their manager is not providing leadership, guidance, motivation and support. Poor morale generally increases staff turnover and lowers productivity and profitability.
The success of any business depends largely on the effectiveness of its managers. Good managers make the right decisions thereby ensuring that the business can take advantage of any opportunities available. At the same time, good managers protect the business by anticipating and proactively managing any threats to its welfare. Managers have direct influence on the employees they manage. Managers have the responsibility for aligning the performance of their employees with the organization’s goals. Management is a discipline that consists of five general functions: planning, organizing, staffing, leading and controlling.
Poor service quality is another common sign of incompetent management. Examples of poor service quality include frequent service interruptions, rising levels of product returns or service cancellations and increasing numbers of consumer complaints. Customer service and quality control are related issues. If a small business sells inferior quality products or provides substandard services, the volume of calls to its customer service department will increase. The company may not have enough representatives to handle the increased call volumes, which could mean even more angry customers. Incompetent managers are not able to provide consistent, strategic guidance to employees. They often provide overly optimistic revenue and profit forecasts. If they are unable to meet these forecasts, stakeholders lose faith in the managers.
High employee engagement is directly linked to higher employee productivity, higher profitability, and lower absenteeism and turnover. To ensure high employee engagement, companies have to ensure that every team is led by a competent manager who understands the needs of their team. High performing teams are high on motivation and engagement. Managers are responsible for motivating their teams. The manager’s job is to build teams that are highly productive and organizations that are profitable.
By using talent assessments during hiring, organizations can base their manager selections on objective measures of competencies. Psychometric assessments help assess the cognitive, behavioral, and personality related competencies that predict how well a person will lead a team, and how well they will keep their employees motivated and engaged.